Exchange Traded Concepts LLC Reduces Stake in Dropbox, Inc. $DBX

Key Points

• Exchange Traded Concepts LLC sold 11,811 shares of Dropbox, Inc., reducing its stake by 12.5%, and now holds 83,037 shares valued at approximately $2.375 million.
• Insider Ashraf Alkarmi sold 10,098 shares, while CEO Andrew Houston sold 92,000 shares, highlighting ongoing insider selling activity within the company.
• Dropbox reported $0.71 EPS for the last quarter, exceeding estimates, although its revenue was down 1.4% year-over-year at $625.70 million.

Exchange Traded Concepts LLC reduced its holdings in shares of Dropbox, Inc. (NASDAQ:DBX - Free Report) by 12.5% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 83,037 shares of the company's stock after selling 11,811 shares during the quarter. Exchange Traded Concepts LLC's holdings in Dropbox were worth $2,375,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Elequin Capital LP raised its position in Dropbox by 71.0% in the first quarter. Elequin Capital LP now owns 1,130 shares of the company's stock worth $30,000 after acquiring an additional 469 shares during the period. Brooklyn Investment Group increased its holdings in Dropbox by 250.3% during the 1st quarter. Brooklyn Investment Group now owns 1,387 shares of the company's stock worth $37,000 after acquiring an additional 991 shares during the period. SBI Securities Co. Ltd. increased its holdings in Dropbox by 33.4% during the 1st quarter. SBI Securities Co. Ltd. now owns 1,794 shares of the company's stock worth $48,000 after acquiring an additional 449 shares during the period. Fifth Third Bancorp grew its stake in Dropbox by 27.3% in the 1st quarter. Fifth Third Bancorp now owns 2,288 shares of the company's stock worth $61,000 after buying an additional 490 shares in the last quarter. Finally, UMB Bank n.a. grew its stake in Dropbox by 115.0% in the 1st quarter. UMB Bank n.a. now owns 2,501 shares of the company's stock worth $67,000 after buying an additional 1,338 shares in the last quarter. 94.84% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CTO Ali Dasdan sold 12,812 shares of the business's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $30.00, for a total value of $384,360.00. Following the sale, the chief technology officer owned 551,060 shares in the company, valued at approximately $16,531,800. The trade was a 2.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Karen Peacock sold 2,000 shares of Dropbox stock in a transaction on Monday, September 8th. The stock was sold at an average price of $30.00, for a total transaction of $60,000.00. Following the transaction, the director directly owned 23,295 shares of the company's stock, valued at $698,850. The trade was a 7.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 314,333 shares of company stock valued at $8,938,399 in the last three months. Corporate insiders own 28.59% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Wall Street Zen cut shares of Dropbox from a "buy" rating to a "hold" rating in a research note on Friday, September 5th. UBS Group cut shares of Dropbox from a "neutral" rating to a "sell" rating and dropped their price target for the company from $29.00 to $27.00 in a research report on Thursday, September 18th. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Reduce" and an average price target of $29.67.

Dropbox Price Performance

Shares of DBX traded down $0.10 on Tuesday, reaching $30.81. The company's stock had a trading volume of 1,141,229 shares, compared to its average volume of 3,740,371. Dropbox, Inc. has a 12-month low of $24.42 and a 12-month high of $33.33. The stock has a market capitalization of $8.32 billion, a P/E ratio of 18.78, a PEG ratio of 4.05 and a beta of 0.69. The stock's 50 day simple moving average is $28.54 and its two-hundred day simple moving average is $28.07.

Dropbox (NASDAQ:DBX - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.71 EPS for the quarter, topping analysts' consensus estimates of $0.63 by $0.08. The company had revenue of $625.70 million for the quarter, compared to analysts' expectations of $618.60 million. Dropbox had a net margin of 19.17% and a negative return on equity of 61.31%. The firm's revenue was down 1.4% compared to the same quarter last year. During the same quarter last year, the business earned $0.60 EPS. Analysts expect that Dropbox, Inc. will post 1.64 earnings per share for the current year.

About Dropbox

Dropbox, Inc provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries.